<DIV>In this work James Tobin discusses two major issues of macroeconomics: the strength of automatic market forces in maintaining full employment equilibrium and the efficacy of government fiscal and monetary policies in stabilizing the economy.

Kaldor's capital/labor income distribution theory relied on differential saving propensities from profits and wages. Robinson's growth models typically specified constant-coefficient technologies in which marginal productivities cannot determine distribution. Here these two insights are combined...

This paper is intended to be a chapter in a forthcoming "Second Edition" of John Maynard Keynes, The General Theory of Employment, Interest and Money, published in one single edition in 1936. The Second Edition is being edited by Geoffrey Harcourt and Peter Riach and will contain contributions...

Friedman identified his "natural rate" as Walrasian equilibrium. Keynes's "full employment" is also classical equilibrium: labor markets are clearing at existing real wages. Why is equilibrium unemployment not zero? Keynes and Friedman cite, but do not explain, "frictional" unemployment. They...